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rocess improvement. ? GE broke the mold, and launched specific projects in parallel with process improvement This is the approach that we are encouraging Samsung Corning to take. 3 History of Successful Six Sigma Deployment 4 Mr. Welch’s Story ? “ The first year, we used Six Sigma to attack costs, improve productivity, and fix broken processes. ? In 1997 we achieved $320 million in productivity gains and profit ? By 1998, we had generated $750 million in Six Sigma savings and got $ billion in 1999. ? Our operating margins went from percent in 1996 to 18 percent in 2023.” 5 Mr. Welch continues …. ?“ The next phase was to use Six Sigma tools to fix and design new products” ? GE Power Systems customers were experiencing Power Down situations with regularity. GE redesigned and reduced unplanned downtime from 33% to 0 on the last 210 units produced since. ? GE Medical launched a new CT scanner with reduced MRI procedures from 3 minutes to 17 seconds.” 6 Functionally Focused Six Sigma Project Selection ? Most anizations are measured by “functions” ? Six Sigma success is largely within functions ? Executives may operate as a team but are focused, individually, on the functions. Strategy Action Sales Finance Marketing Human Resources Purchasing Manufacturing Product Development Functions Customers? $$ Six Sigma Project Savings $$ 7 Mr. Welch continues … still not enough “ Our customers were telling us that they felt no difference in quality.” Company is happy….. But Customer still doesn’t receive reliable deliveries! 8 Mr. Welch continues now Customer Notices ? The customer needs reliable delivery as much as short cycle times ?Now the customer is happy! 2520231050403020100Span3FrequencyD e l i v e ry T i m e9 Customer Process Your Process C A B Customer View How did the performance of my supplier affect my total process performance? Your View Two Views of Performance How did we conform to the customer’s requirement? At the Customer For the Customer (ACFC) At The Customer For the Customer 11 ACFC Metrics ? GE Aircraft Engines no longer focuses just on how long it takes to repair an engine for